RTF, Inc Common Stock Sells for $22 a Share and Pays

question 379

Multiple Choice

RTF, Inc. common stock sells for $22 a share and pays an annual dividend that increases by 3.8% annually. The market rate of return on this stock is 8.2%. What is the amount of the last dividend
Paid?

• A) $0.88
• B) $0.90
• C) $0.93
• D) $0.97
• E) $1.00

---

Definitions:

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Costs

Costs that do not change with the amount of goods or services produced, such as rent, salaries, and insurance.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net gain or loss.